Network Structure and Ties
Benefits of Being a Broker
Being a broker offers significant advantages at both individual and organizational levels.
- Individual Level: Brokers are more likely to be promoted, earn higher salaries, and increase their human capital (education and experience).
- Organizational Level: Brokers facilitate faster implementation of new ideas and technologies and are often perceived as more innovative.
Example: Company IDeA
Company IDeA is a product design firm known for innovation. They act as a technology broker by combining knowledge and information from different industries to create new products. For instance, they developed water bladders (like CamelBak) by applying medical device technology to a different realm.
Measures of Network Structure
Centrality
Centrality indicates the extent to which someone is at the hub of a network. It is measured by:
- Degree: The number of contacts or ties an individual has.
- Betweenness: The extent to which an individual is the go-between or shortest route between others, allowing them to control information and influence.
- Closeness: The extent to which an individual can easily and quickly reach others in the network, whether through direct ties or intermediaries.
Greater degree, betweenness, and closeness indicate higher centrality.
Prestige
Prestige refers to the extent to which others seek out an individual. It is determined by the number of incoming ties (arrowheads pointing towards an individual).
Structural Holes
Structural holes are separations between non-redundant contacts. Brokers bridge these holes, connecting otherwise disconnected individuals.
Breadth
Breadth refers to the range of contacts one has, considering both the number of contacts, the content (information exchange), and the diversity of those contacts.
Network Ties
Multiplexity
Multiplexity refers to the multiple ways in which individuals are connected. For example, classmates who are also roommates and share other classes have multiplex ties.
- Simplex tie refers to a connection on only one-dimension
Strength
Strength indicates the amount of time, emotional intensity, and intimacy between two actors. Multiplex ties often lead to stronger ties due to increased interaction.
- Strong ties: High time, emotional intensity, and intimacy (e.g., parent-child relationship).
Tie Strength and Job Acquisition (Granovetter Study)
Mark Granovetter's study in the 1970s examined how people find jobs:
- 20% found jobs through formal means.
- 56% found jobs through personal connections.
Interestingly, the majority of jobs acquired through personal connections came through weak ties (infrequent contacts).
Strong ties often provide redundant information, limiting access to new opportunities. Weak ties, consisting of casual acquaintances from different social circles, offer access to non-redundant information and more diverse job opportunities.
Granovetter termed this the strength of weak ties, noting that weak ties are willing to expend effort to help in job searches despite minimal shared identity.
Tie Strength and Job Performance (Hansen Study)
Martin Hansen studied information transfer in product design and development within a global technology company. He found that the benefit of strong or weak ties depended on the type of technology being transferred.
- Explicit Knowledge: For technologies requiring information dissemination, weak ties were more beneficial due to access to non-redundant information.
- Tacit Knowledge & Assistance Needed: For technologies requiring assistance or having many questions, strong ties were more effective, as they offer more time, energy, and effort to help understand information.
Hansen concluded that weak ties are best for disseminating diverse information, while strong ties are best for providing assistance.
Summary
- Discussed network structures: cohesive and bridging.
- Identified network roles and the benefits of being a broker.
- Examined measures of network structures and ties, including the strength of weak ties.